RFI Global release latest findings within UK SME Banking Market at exclusive breakfast briefing in central London.
London 19 October 2023 – Embargoed until 12.00 Noon GMT on 19 Oct. 2023
Today, at an exclusive breakfast briefing at Marylebone private members club, Home House, RFI Global released their latest proprietary-backed findings within the UK SME Banking Market including; SME’s needs as the landscape and market evolves, revolutionising SME banking and the surge in FinTech adoption, and future directions for SME payments ecosystems.
Opportunities to Continue Meeting UK SME’s Needs in an Evolving Landscape
Focused on driving efficiencies over the next 12 months, research revealed that the intentions of UK SMEs taking out a savings product is at its highest level in 4 years.
Moving into 2024, ‘access to good digital solutions’ will supersede ‘reputation’ as a driver of main business bank of choice, suggesting financial institutions who wish to grow must evolve their propositions to meet these specific needs.
UK SMEs recently interviewed and surveyed by RFI Global stressed the importance of a straightforward application and a transparent approval process as fundamental in alleviating lending pain points – especially in an evolving digital landscape. Additionally, flexibility when it came to repayment options will provide an opportunity for providers to stand out within the UK market.
A consistent unmet need among UK SMEs since 2021 has been the failed commitment to business’ long-term growth, with the role of advice/ support fundamental throughout the UK SME relationship falling short.
Finally, there is no one-size-fits-all approach to UK SME servicing. Overall sentiment showed it is important to leverage strong digital solutions, while incorporating the in-person contact to deliver a seamless, holistic customer experience UK SMEs crave.
Revolutionising UK SME Banking: Unveiling the Surge in FinTech Adoption.
Advancing digitalisation has created a fertile ground for the growth of digital-only providers with three-quarters of UK SMEs surveyed preferring to conduct their banking digitally.
Research revealed that satisfaction with access to innovative solutions is currently low and many UK SMEs who switched in the last 5 years cited their quest for better digital capabilities and access to more innovative products as their main decision-driver.
Over 2 million UK businesses now use digital-only providers.
RFI Global records that close to 2 in 5 UK SMEs now use digital-only providers, with neo banks leading the way. The quality of digital capabilities and ease of onboarding and servicing experience, came out as a clear and easy driver of digital-only provider adoption.
These providers are well-positioned for further expansion, driven by increasing trust and the fact that their key strengths lie in areas perceived as underserved by traditional banks.
Future Directions for UK SME Payment Ecosystems
When making payments, RFI Global research shows UK SMEs moving increasingly away from using their own personal cards and paper methods, instead using business credit/ debit cards, and electronic payment methods. Increases in card use are likely to continue as UK SMEs look for a simple, convenient payment solution which also helps with the challenge of cashflow management.
Convenience is king for SMEs across the UK when making payments, with varying secondary factors depending on the payment method preferred. However – the importance of convenience and simplicity also extends to accepting card payments, both due the effect on staff and customers.
UK SMEs are looking for a greater level of digital innovation, through real-time payment overviews, greater complexity in digital solutions, and additional analytics and integrations. UK SMEs also express a strong desire for acquirers to specifically understand their industry, as well as their specific consumer behavioural trends.
Despite some uncertainty, overall SMEs across the UK see the potential for AI in their payment’s ecosystem, particularly those with over £1M in revenue – indicative of the ‘top-down’ nature of innovation within the UK SME landscape.
RFI Global are more than happy to discuss these findings with the Media, please get in touch.
Additional Notes for Editors:
About RFI Global
About RFI Global
RFI Global is the data and insight partner for the world’s financial services community. Since 2006 we’ve provided tailored subscription-based insight and data solutions for local, regional and global Financial Services players that enable them to make data-driven decisions confidently and quickly. To learn more, please visit rfi.global.
About Diversis Capital
Founded in 2013, Diversis Capital is a software and technology-focused private equity fund with more than $1 billion under management. Diversis invests in middle-market companies that can benefit from the firm’s proven ability to improve and grow software companies. With a collaborative approach to investing, its operating partners and strategic advisors work alongside management teams to help build successful organizations positioned for long-term growth. To learn more, visit www.diversis.com.
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